2024 Property Trends on the Sunshine Coast

Just an hour north of Brisbane, the Sunshine Coast continues to be one of the most sought after spots in all of Australia. Although tourism is always going to be a major factor, more and more people are turning to the Coast as a place to live, work, and raise a family. In turn, it has also made it a viable destination for property investment.

So, where do you stand if you already own a property here? If you’re currently thinking about leasing on the Sunshine Coast, we’re here to break down the latest trends and developments as we enter 2024. This will also include under-the-radar suburbs that we highly recommend for any prospective investor.

What Makes the Sunshine Coast So Special?

From Caloundra to the Great Sandy National Park, the Sunshine Coast stretches for more than 100 km along the beautiful coastline of South-East Queensland. While stunning beaches tend to steal the spotlight, this region is also home to some of Australia’s most picturesque mangrove forests, lakes, hills, and waterways.

As we noted earlier, the Coast is much more than a tourist hot spot. Over the past few decades, the region has grown on the back of major infrastructure projects and investment into local communities. The number of units and apartments, as an example, has increased significantly in recent years.

House Prices

The median house price hit a record high of $1,000,000 in March 2022. This was the culmination of significant growth in the Coast overall, as many people made the move from interstate during the height of the pandemic.

While house prices have dipped slightly since, this is not all bad news–particularly if you’re a first time buyer looking to enter the market. The other positive trend for investors is the consistent growth of rental prices, which have continued to rise in line with median house prices.

Overall, however, the median prices are still lower than many other capital cities, including nearby Brisbane. The strong demand for property on the Sunshine Coast also means that there are no shortage of buyers out there if you decide to sell.

Vacancy Rates

In line with nationwide trends, vacancy rates on the Sunshine Coast have remained at record lows, and this trend shows no signs of changing anytime soon. In the real estate sector, vacancy rates refer to the number of vacant properties that are put up for lease. A low vacancy rate, therefore, means that very few properties listed fail to secure tenants.

At the current figure of 0.58%, the Sunshine Coast has the second lowest vacancy rate in the entire country, and is only surpassed by the Bunbury region of WA. For investors and homeowners, this means that there is a very high likelihood of finding tenants for open listings.

While there are more tenants looking to secure a property, careful tenant selection is still as important as ever. At We Do Property, we love to connect people with places, and take great pride in our tenant screening process.

If you need help from property managers on the Sunshine Coast, we’re more than happy to lend a helping hand! Contact us today and let’s chat about your next adventure.

Where Can You Invest?

Given that it stretches over more than 100km, the Coast is incredibly varied. The local property markets of each suburb are no exception. While property investment ultimately depends on your personal preferences, budget, and requirements, we’re going to highlight two areas that are certainly well worth a look!

Nambour

Despite the undeniable appeal of beachside suburbs, many renters also appreciate Queensland’s lush rainforests and native wildlife. Bearing this in mind, let’s shift our focus back to the hinterland. Nambour, situated west of the coast, presents significant opportunities for property investors. While the local beaches are easily accessible, Nambour is surrounded by the lush greenery of the Blackall Range.

Throughout this town, numerous affordable properties offer substantial long-term potential. These options encompass family-friendly houses and units, boasting robust yields ranging from 4.7% to 5.2%. In fact, Nambour has been officially noted by Domain.com as one of the finest ‘under the radar’ areas for homebuyers across the entire Sunshine Coast region.

Alexandra Headland

Frequently referred to as ‘Alex’, Alexandra Headland is one of the most sought-after coastal destinations on the Sunshine Coast. As a result, the median prices for houses are consistently strong.

While the median house price has decreased slightly over the past year, unit prices have remained as strong as ever. With an increasing number of compact residences entering the market, this popular suburb presents an excellent opportunity for both seasoned investors and first-time buyers.

Rental prices in Alexandra Headland have seen a 7.6% increase over the past 12 months, resulting in an average yield of 4.8%. Competition for rentals in these coastal communities can be intense, underscoring the importance of collaborating with experienced property managers.

Moving Forward

In December 2023, the Queensland state government released the details of an upcoming planning framework, the ‘ShapingSEQ’. This includes a plan to build almost 900,000 more homes by 2046. ShapingSEQ aims to provide more affordable and well-located homes in South-East Queensland. This is particularly important given the projections that the local population will rise by almost 2.2 million people over the next two decades.

In particular, the plan involves a further commitment to the development of units, apartments, and townhouses, which is in line with a growing demand for these types of residences across the country.

Work with Local Property Managers on the Sunshine Coast

Our property managers are Sunshine Coast locals, meaning that we have first-hand experience with the many ebbs and flows of the property market. This expertise allows us to navigate today’s rental market and quickly deal with any issue that may arise.

We Do Property draws from both the perspective of buyers and tenants to create a harmonious relationship with minimal ongoing issues. Our staff are also happy to offer assistance with insurance claims, rent collection, building maintenance or QCAT disputes.

We have an all-inclusive management fee of 8% + GST with no surprises. However, for the placement of a new tenant, the letting fee is one week’s rent + GST. If you have any further questions about this fee structure, feel free to get in touch.